Many companies at certain periods of their development start suffering from discontent of customers concerning company services or product quality. Production planning in this case needs to be improved, appropriate business processes need to be optimized and powers of production should cope with the volume of orders. If it doesn’t happen, then sales decrease, and, as a result, profits lower.
In order to understand the reasons of such a crisis, modern companies use the method of “five whys”. The point is that thanks to the question “why?” you build the chain of activities and find the initial reason of a problem. Using such a method, you can define at least five reasons which have an impact on customer loyalty directly or indirectly.
Probable reasons which have a negative impact on customer loyalty are:
- Disrupted deadlines of order preparing;
- Disrupted deadlines of installation work;
- Low quality of products and services;
- Low productiveness of the enterprise.
- Overfilled warehouses of end products and, as a result, increased expenses on payments and maintenance of warehouse spaces;
Disrupted deadlines of order preparing
Starting from a phone call of a customer and ending with the result an order comes through many services of an enterprise. And one of problem areas of this route can be production. Disrupting of deadlines can happen because of incorrect planning of production performance. In order to avoid this situation, optimization of business processes in production sphere should be provided.
Disrupted deadlines of installation work
If your enterprise produces goods which need the following installation work, you should pay more attention on correct order picking. Otherwise, installation work can be stopped because of incorrect order content. Customers won’t be satisfied, as all of them have their own deadlines and time limits. To avoid such a difficulty, optimization of business process of order picking is needed.
Low quality of products and services
Low quality of products and services is mainly the result of missed deadlines on order preparing and installation work. In order to improve the situation, you should optimize business processes of relations with customers.
The necessity to enlarge labor productiveness of employees
Having analyzed weak points of production, the following reasons of low labor productiveness become obvious:
- Unbalanced loading of production powers;
- The necessity to attract and to train new employees;
- Frequent damages of machinery;
- Impossibility to reach an appropriate level of productiveness;
Overfilled warehouses of end products
The problem of overfilled warehouses can be caused by the fact that time limits of production and shipment very often are not connected with each other. One more reason of it is that in case of customer pickup customers didn’t follow planned dates of picking up and products are left in the warehouse. To solve these problems, optimization of business processes of order shipment and storing should be provided.